CHAPTER 1

The Problem and Its Setting

Introduction

The COVID-19 pandemic has had a tremendous impact on economies and

individuals of all ages and walks of life all around the world. Global pandemics have
become more common in recent decades, including as SARS in 2003, H5N1 in 2006,
and H1N1 in 2009, all of which impacted corporate activity and economic growth
(Chung, 2015). In the first two months of 2020, the Covid-19 virus, for example, caused
a 13.5 percent loss in Chinese industry production and a 20.5 percent drop in retail
sales, while the U.S. The stock market in the United States has lost trillions of dollars,
resulting in a negative wealth effect and a reduction in GDP (Pesek, 2020). Infectious
diseases, as scientists have long warned, can thrust business activities into a new
reality that has a significant influence on operations and leaves managers unsure of
how to respond successfully (Hudecheck et al., 2020). Consequently, consumers are
increasingly flocking to online purchases as a result of the Covid-19 effect; therefore,
managers must be creative in exploring other forms of supply that increase interest in
the facilitation of enterprises and consumers. Filipinos were forced to rely on e-
commerce, or online shopping and selling, to meet their requirements due to stringent
lockdowns and rising unemployment.

As people try to maintain normalcy in their lives despite pandemic restrictions,

social media and virtual meetings have become the "new normal" on a national and
global scale. In the Philippines, according to the Digital 2020 April Statshot study from
Hootsuite and We Are Social, 64 percent of Filipino internet users are spending more
time on social media, with 23 percent reporting increased online buying activity.
Entrepreneurs have embraced the digital phenomena for online buying even more as
people resort to online shopping because to pandemic constraints. E-commerce
companies like Lazada and Shopee are in the vanguard of these online shopping
platforms, with millions of pesos in predicted sales. Online business transactions have
already been changed by technology into an infinite marketplace where doing business
has become more convenient and efficient for both sellers and vendees. The COVID-19
epidemic has highlighted the importance of this market. Since physical restrictions are
still in place, businesses' internet presence proven to be quite valuable during the
pandemic.

Furthermore, numerous netizens are now using their social media accounts (i.e.,
Facebook and Instagram) to sell or purchase products depending on their needs or
wants. According to Facebook's Emerging Trends Research, advertisers who were able
to shift digitally during the health crisis made money, and consumers are more inclined
to continue to shop online for convenience. In recent months, Live Selling, a growing
Facebook trend in which a business sells auction-style or an inventory show-and-tell in
real-time via Facebook or Instagram Live, has gained traction, with one in four people
surveyed having browsed such activity on social media. According to the study, 87
percent of Filipino respondents indicated that social media enabled them to interact with
brands more and deepen their relationships. The Philippines' respondents were
regarded as adventurous shoppers in the report, with 80 percent wanting to experience
new and alternative ways of purchasing. Additionally, live Shopping, which is frequently
done in an exciting manner with real-time questions and answers, promotions, and
games, has 85 percent of respondents expecting it to grow this year.

Taguig City is known to be a 1st class highly urbanized city in Metro Manila. More
than 800,000 residents are affected by COVID-19 pandemic, thus, most of these
residents are now engaging through online selling and online buying due to strict city-
wide lockdowns and travel restrictions. On the other hand, Napindan is one of the 28
barangays of Taguig City, which is comprising of 19,346 residents. This study aims to
analyze the online live selling amid COVID-19 pandemic among households in
Napindan Taguig City. Specifically, it is hoped that this study will shed light to the views,
attitudes, and practices of online seller and online buyer; significant changes or
improvement on online live selling, as well as online transactions; and the possible
future recommendations for both seller and buyer for the improvement and reliability of
online transactions amid COVID-19 pandemic.
Background of the Study

Napindan Taguig City is the main setting of this study. The researcher will only
choose twenty (20) households who will participate in the said study.

Due to COVID-19, the livelihood of residents at Napindan Taguig City are greatly
affected. Physical stores, especially those who are selling non-essential products, were
temporarily shut due to restrictions brought by COVID-19 pandemic. In addition, strict
quarantine and travel restrictions were implemented in order to decrease the COVID-19
cases. Therefore, Filipino sellers, including some of the residents in Napindan Taguig
City, shifted to online platforms to sell their products. On the other hand, Filipino
consumers also shifted to online platforms for their daily needs such as groceries, food
deliveries, as well as bank or financial transactions. Thus, both of the seller and the
buyer are meeting their goals while protecting them from the novel coronavirus and
limiting the physical contact with other people.

Aside from e-commerce companies such as Lazada and Shopee, one of the
most used and famous social medias is Facebook that has a total of 96% of users as of
the third quarter of 2020 (Statista, 2021), where people can buy goods and
commodities. Some people can post what they want to sell and the buyer can buy or
ask for other information through direct message to the seller. On the other hand, in
online live selling, the seller will conduct an “auction style” approach and shows the
consumers the available items in real time. The price and other details of the item will
be uttered by the seller. If the buyer wishes to buy the product, he or she will only
comment “mine” in the comment section of the Facebook live or in other online
platforms where online live selling is available. Most people prefer to buy in online live
selling because they can see the actual item directly than in posted items, of which
there are some posted items that are not the same in actual photo.

Likewise, according to ABS-CBN news by Jessica Fenol (2021), “Filipinos prefer

convenience live selling when shopping online, as new trends emerge due to COVID-19
pandemic.” In Facebook, there are more than ten (10) Facebook pages for Napindan
Taguig City where online selling and online buying are available. One of the Facebook
pages is comprising of more than 23,000 members.

This study also aims to determine the behavior of the online consumers in
Napindan Taguig City, and the factors that affect or encourage the consumers to buy a
certain product from the selected respondents who are online seller. The pros and cons
of online live selling will also be discussed in this paper. Recommendations for the seller
and buyer will also be included by the researcher, as well as the business strategies
associated with online live selling.
Conceptual Framework and Paradigm

CONCEPTUAL FRAMEWORK: This study is intended to analyze the online live selling
amid COVID-19 pandemic among households in Napindan Taguig City.

INPUT PROCESS OUTPUT

1. Consumer Profile

a. Age  Future
b. Gender Recommendations
 Descriptive  Enhanced policies
2. Contributing factors Research in online platforms
that affect the  Random regards with online
consumers’ behavior Sampling selling and online
in online live selling  Survey buying.
Questionnaire  Proposition of
a. Roles of Online
Forms Possible Business
Seller
b. Products of the  Open-ended and Strategies in
Seller Close-ended Online Live Selling
c. Needs vs. Wants Interviews
d. Pandemic Fear (Unstructured)
e. Legitimacy of the  Analysis of Data
Online Page or through
Account of the supplementary
Seller analysis

FEEDBACK
Statement of the Problem

Purposive studies were conducted to investigate the recent status of online live
selling in the Philippines. Several studies were carried out to investigate the quality of
online live selling and online transactions between the seller and the buyer.

To establish the objectives of this research, the study seeks to answer the
following questions:

1. Which selling feature encourage most people to buy the products of the
respondents?
2. What is the profitability of live online selling declared by the respondents?
3. What kind of business strategy can be proposed based from the findings?

Purpose of the Study

The purpose of the study is to analyze the online live selling amid COVID-19
pandemic among households in Napindan Taguig City.

Scope and Limitations

The study is focused and limited only on the analysis of online live selling amid
COVID-19 pandemic among households in Napindan Taguig City; the manifestation in
the implementation, and its association to the development of the consumers’ buying
behavior, further validated based on participants’ responses on the open-ended and
close-ended interview questions, while the participants’ profiles on their simulated online
live selling experience is categorized based on the survey instruments. The research
instruments were only administered once and follow-up questions were conducted to
further verify their opinions and perspectives, as well as to their stand on the matter.

The study is limited to the selected residents in Napindan Taguig City who are
currently doing online live selling in their respective households. The study is conducted
during the final term of second semester, S.Y. 2020-2021. Selected residents were
selected as respondents of the study.

Significance of the Study

The researchers would intend to provide useful insights regarding the online live
selling amid COVID-19 pandemic among households in Napindan Taguig City. The
useful and relevant in formation acquired from the study would benefit the following
sectors:

Online Sellers and Buyers. Understanding the diversity and the needs of every
online consumer is the very goal of online selling. The outcomes of this study will help
these online sellers to adapt new business strategies with the incorporation of utilization
methodologies. Positive implications of online live selling will provide online consumers
with useful and helpful reflective insights on the different factors that could affect their
buying behavior. This will also direct new possibilities in providing a more dynamic and
diverse online selling/buying environment without affecting negatively the behavior and
practices of both seller and buyer.

Social Media Developers. Social media developers can refer the findings of this
study to guide sellers and buyers into a more holistic scholastic approach and forge a
stronger online transactions responsive to the new challenges of diverse online
platforms and differing identities of the netizens.

Researchers. This research will also provide new directions for further studies
that can be explored related to this topic.
Definition of Terms

To further the understanding and interpretation of this study, the following items
are operationally defined:

Online live selling – is a way sell products through internet and to digitally
replicate the shopping experience at a physical store.

E-commerce – buying and selling of goods and services through the internet.

Online platforms – public-facing internet website, web application, or digital

application such as social network, ad network, and search engine that sells
advertisements directly to advertisers.

Social media – websites and applications that allows users to create and share
content, or to engage with social networking.